Demonetisation hardships will last only one or two quarters, says Arun Jaitley

Bhubaneshwar: Finance Minister Arun Jaitley on Thursday said the hardships faced by people over demonetisation will remain for one or two quarters but its effect on the economy will be seen in long term.

Arun Jaitley. PTI file image

"The effect of demonetisation would remain for one or two quarters, but its effect on the economy would be seen in the long term," Jaitley told reporters on the sidelines of the 'Made in Odisha' conclave.

He thanked Odisha chief minister Naveen Patnaik for backing the demonetisation and the Goods and Services Tax (GST).

Elaborating the effects of the two major decisions, he said, "I believe both decisions would prove a game changer. GST will ensure higher taxation as far as Centre is concerned and the states are concerned. It's a more efficient system. It plugs leakages and it will certainly help a state like Odisha."

As far as currency changes are concerned, once the process is completed and the economy gets back to full speed, the size of the GDP will expand, Jaitley said.

"Money coming to banks will be used more fruitfully for the benefit of the economy, and together these two things have the potential to exaggerate what the Centre and the state are doing," he explained.

Hailing the high growth rate of Odisha this year, Jaitley said, "If Odisha's GDP grows faster than the national GDP, it will also help in improving the GDP of the country."

He said the Odisha government will have complete support of the central government for its Make in Odisha campaign. "Odisha, a state which conventionally had a very high percentage of people below the poverty line, is now trying to improve its growth rate. And this rate has improved significantly in recent times. Poverty levels have come down," he said.

Odisha registered a GDP of 9.2 percent, two percent higher than the national GDP.